Social Life Cycle Assessment in the Value Chain

Authors:

Ms. Ambalika Gupta (Mahindra Sanyo Special Steel Pvt Ltd.; India) Mr. Peter Tarne (BMW Group; Germany) Mr. Uday Gupta (Mahindra Sanyo Special Steel Pvt Ltd.; India ) Ms. Marzia Traverso (PhD), ( Ex. BMW Group)

A Pilot Study in the Steel Industry

Introduction to Mahindra Sanyo Special Steel Pvt. Ltd. (MSSSPL)

Formerly Known as Mahindra Ugine Steel Company (MUSCO)

Established : 1962

Location : Khopoli (Maharashtra), India

2012 MUSCO renamed as Mahindra Sanyo Special Steel Pvt Ltd. as joined venture between Mahindra & Mahindra

(51%) India, Sanyo Special Steel (29%) Japan, and Mitsui (20%) Japan

Business : Manufacturing & Sales of Special Steel Long Products

Products : As-cast Ingots, Rolled products, Forged bars, Rings

Turnover : USD 135 Million

Employee : ~1000

Introduction to Mahindra Sanyo Special Steel Pvt. Ltd. (MSSSPL)

Process Route : Electric Arc Furnace, Rolling Mills, Forge Shop, Heat Treatment

Forward integration : Rings Division for value added products in the bearing sector

Customers

Auto : Suzuki, M & M, JD

Bearing : Timken, SKF, NSK, FAG

Oil & Gas Application : Cameron, Halliburton, Smith International, T 3 Energy, FMC technology

Engineering : Cummins, Siemens, Ferromatik, Kabra

Mining Tools : Sandvik, Atlas Copco, Mitsubishi Materials

Indian Railways

Our Vision

MSSSPL’s Vision is to be the most Admired, Successful and Socially Responsible Special steel Manufacturer in

India by 2019

Our Sustainability Framework

Guidelines

Feedback Mechanism

Balanced Score Card

Enablers (MQW Framework of Management Processes

Motivation for establishing round table

We assess the environmental impacts,

What about the social ones?

India’s Perception

http://www.globalslaveryindex.org/download/

Meaning of modern slavery, includes the term slavery itself, but also other concepts such as human trafficking,

forced labor, debt bondage, forced or servile marriage, and the sale and exploitation of children.

In absolute terms, the countries with the highest number of people in modern slavery are: •India •China •Pakistan •Uzbekistan •Russia •Nigeria •Democratic Republic •of the Congo •Indonesia •Bangladesh •Thailand

The Roundtable for Product Social Metrics

Triggered by these practical shortcomings,

a group of experts from large companies

decided to join forces, initiating the

Roundtable for Product Social Metrics.

Stakeholder Categories & Topics of Social Impact Assessment

Workers

• Occupational Health & Safety • Wages • Social Benefits • Forced Labor • Discrimination • Freedom of Association & Collective bargaining • Employment relationship • Training & Education • Work-life balance • Job Satisfaction & Engagement

Consumers

• Health & Safety • Experienced well-being

Community

• Community Health & Safety • Access to tangible resources • Local capacity building • Community engagement • Employment

Assessment Methodology: Referencing Quantitative

Referencing Example: measuring Workers’ Training and Education

The Roundtable for Product Social Metrics

OBJECTIVE :

The main target of this project was to develop a feasible methodology for a quantitative and qualitative assessment

of positive and negative SOCIAL IMPACT of a product along its life cycle.

Challenges such as data availability and necessity to involve companies along the product life cycle have to be

faced for further case studies!

Scrap (import & domestic) MSSPL QSM Hungary Mahindra Rings India

Examples of Snapshot summary of the Scales Based Approach

PSIA : Dashboard Snapshot

Hurdles & Insight

Data gathered

Hurdles :

Time consuming

Reaching to the relevant point of contact

Skeptical about social data sharing from the suppliers

So, no complete information according to PSIA could be gathered.

Impacts on local community undeterminable

Steel Scrap Steel manufacture Bearing manufacture Assembly to car

Country Various India Hungary Germany

Quantitative Data +/ - + + +

Qualitative Data +/- + +/- +

Benefits

Quantitative approach could be easily integrated with the E-LCA for reaching a comprehensive life cycle

sustainability assessment.

Understanding the risk and improvement opportunities before decisions are made to start a pilot project .

Assess the impacts of a product for internal assessment and optimization, helping companies to identify and

take up joint projects that address the concerns highlighted in the study.

Thank you..!!

Contacts:

Ms. Ambalika Gupta (Gupta.Ambalika@mahindra.Com ) Mr. Peter Tarne (Peter.Tarne@bmw.De) Mr. Uday Gupta (Gupta.Uday@mahindra.Com) Ms. Marzia Traverso (PhD), (Marziatraverso@gmail.Com)

Handbook: http://product-social-impact-assessment.com/